Companies will still face pressure to manage for climate change, even as government rolls back US climate policy
With the transfer of the federal government to Eliminate climate rules for usCompanies are still pressing to be better than the planet’s rulers than Clientsand Investorsand employeesand Community communitiesand Lendersand Insurance companiesand International commercial partners and Many countries.
Each of these groups knows that it will face Increase costs from High temperatures and Hald weather If companies do not curb greenhouse gas emissions.
You will find many companies that return to Ways to pollute the past Not in their interest. More than 60 % Among the senior financial officials included in the Kirney Global Management Company in December 2024, they indicated that they intend to invest at least 2 % of their sustainability revenues in 2025.
These companies It may maintain a low level About climate change while the Trump administration is in power, but they have strong financial incentives to continue to reduce its emissions and climate risks.
We are studying private the environment Ruling – The ways that companies and institutions operate outside the government to improve the country’s sustainability and reduce environmental damage. Our work finds that in this polarized era, facing climate and sustainability challenges is not just a matter of government action. This is because a lot of climate progress and sustainability ongoing In the private sector.
Sustainability concerns the lower lines of companies
Companies used climate and sustainability initiatives for years to make them Operations and Supply chains More efficient and Reducing its costs in the long run.
When McDonald’s faced general pressure to reduce waste in the late 1980s, the company cooperated with Environmental Defense Fund To analyze the problem. It managed to reduce its waste by 30 % during the next decade, providing the company with $ 6 million annually. This early risks by McDonald’s opened the door to other environmental groups to help companies understand how to reduce their environmental impact, including emissions, while strengthening corporate profitability.
Marsk, the logistical service giant responsible for About a quarter From global shipping, she responded to pressure from its companies from the companies in a plan To reduce carbon emissions By a third from 2022 to 2030 and reaching net zero emissions by 2045. You expect a combination of Low emissions and A more efficient delivery network With axes and shutters to help achieve their climatic goals while increasing productivity.
Companies also helped increase the expansion of renewable energy, Point out of the competitive economy for renewable energy and Job opportunities. Meta, the parent company on Facebook and Google Invest approximately $ 2 billion In projects to provide renewable energy in the Wadi Tennessee Authority service area, although there is no government asking them to do so. And the major companies continued the signature Renewable energy Energy purchase agreements In 2025.
Microsoft and Amazon They respond to the tremendous new order of energy by trying to locate databases near the current nuclear power plants for cleaner power supply.
Thousands of companies report emissions across private systems
Another sign of the commitment of continuous sustainability is the number of measuring and reporting greenhouse gas emissions even when governments do not ask them to do so.
almost 25,000 companies It represents two -thirds of the global market value and 85 % of S&P 500 Report their emissions To non -profit CDP. Emisples detection It is similar to keeping the fitness magazine with a personal coach. It helps the company to track its progress and planning for future financial and environmental risks. More than 12500 Small and medium -sized companies The emissions were also revealed to CDP in 2024.
Many of these companies were paid at first Presse from environmental groups or Companies customers. Today, they have more reasons for continuing attention to emissions.
California It has its own official reporting requirements designed to encourage companies to reduce greenhouse gas emissions. and Other countries She studies climate detection rules. The Trump administration promised to challenge them, and announced It also plans to reduce Federalism Criteria for reporting greenhouse gasesBut companies are likely to face reports preparation rules.
the The European Union also agreed to reporting requirements. He – she Late the date of their start in April 2025 To give companies more time to comply.
Cleansing supply chains can be more efficient
Management of supply chains with climate risk and environmental risks can also help companies increase their efficiency and reduce climate change risks.
The supply chain is The largest source Among the intermediate emissions of the company and may be especially vulnerable to climate shocks. The storm can be easily disrupted by production or vital charging, and dehydration or thermal waves can destroy crops, stop working and increase costs. Companies appreciation The risk of climate -related supply at $ 162 billion, or nearly three times the cost of mitigating these risks. So many companies have incentives to reduce emissions and expose them to relevant risks.
almost 80 % of the largest companies In seven global economic sectors, environmental requirements for suppliers were set within their value chains as of 2023. These requirements include Reporting carbon emissionsand Reducing emissions and Using sustainable forest practices.
Walmart canceled 1 billion tons of carbon emissions from its supply chain In less than seven years By sharing her experience with suppliers and working with them Reducing their emissions. Wall Mart Sustainable Director of Sustainable Note in 2024 that The voltage made its suppliers more efficient, too.
Keep employees and customers happy
Companies also face pressure from ordinary people – both employees and customers.
More than two -thirds From Americans support procedures to address climate change. until Companies that do not face the consumer You need to support customer and employees with retail. Climate pro -climate actions were found to improve employee and client loyalty.
Patagonia External Clothes Company He ranked third Of more than 300 brands in scanning customer experience 2024, partly due to its reputation in sustainable practices. Many more than 10,000 respondents were martyred in the company Sustainable practices As a major reason for their support.
Many companies also face pressure from Lenders and Insurance companies Who wants Reducing climate risk To their bottom. Dozens of insurance companies She committed to end or restrict subscription for new fossil fuels projects. Others use incentivesLike decrease in companies that reduce emissions or invest in climate adaptation.
Climate change may speed up the current An annual increase from 5 % to 7 % In insured losses, according to the estimates of the believer Swiss Re. Who led some Insurance leaders To recommend Insurance companies take greater steps To reduce emissions through their investments and press policy.
Special climate governance can help buy time
Interest is often focused on the media and defending the group of interests on government measures, but the decisions taken in the administration halls and through initiatives containing non -profit organizations have created an important type of special climate governance.
While companies respond to their economic dangers and incentives, they help buy time to avoid the worst effects of climate change so that the political system recognizes the financial risks that the entire country poses.
This article has been republished from ConversationAn independent, non -profit news organization brings you facts and trusted analysis to help you understand our complex world. Written by: Ethan E. Thorband Vanderbilt University; Michael Vandinbergand Vanderbilt UniversityAnd Zdravka Tzankovaand Vanderbilt University
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Zdravka Tzankova receives funding from the National Science Corporation.
Ethan e. Thorp and Michael Vandinberg for or consulting or have funding from any company or institution that will benefit from this article, and they have not revealed any related affiliations that exceed its academic appointment.
